Environment Agency s Role in Climate Change. IPPC Emissions Trading Mitigation/Adaptation Isobel Moore, Policy Manager, EA Wales

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1 Environment Agency s Role in Climate Change IPPC Emissions Trading Mitigation/Adaptation Isobel Moore, Policy Manager, EA Wales

2 How much is CO2 increasing? Strong correlation between atmospheric temperature and CO 2 Over the past 200 years human activities have increased CO 2 by over 30% The average rate of warming of the climate is expected to be greater than at any time during the last 10,000 years

3 The Government Commitment to Climate Change The UK Climate Change Programme December 2004 Government launched a review of the Climate Change Programme Main Targets Kyoto Protocol Target Reduce emissions of greenhouse gases by 12.5% below 1990 levels by 2010 National Target - To reduce carbon dioxide emissions by 20% below 1990 levels by 2010 February 2003 Energy White Paper committed the Government to reduce UK carbon dioxide emissions by 60% by 2050

4 Other Drivers and Pressures The effects of Climate Change: There will be a greater number of extreme weather events: - More frequent flooding and flash floods - Rising sea levels - Milder winters and hotter summers - Droughts, heat stress and more widespread exposure to diseases such as malaria will impact on health Agriculture and the distribution of food production will change mainly due to changed patterns of water supply, mitigation of CO2 levels will also have a massive effect on the way we live now

5 The Environment Agency s Role Regulate industries under PPC responsible for 40% of UK Green House Green emissions - Large scale schemes involving the burning of biomass are covered by PPC regulations Competent Authority for the Emissions Trading Scheme in England and Wales Adaptation to climate change is critical to several of our functions especially flood risk and water management - Water resources are responsible for issuing abstraction licences for hydroelectric schemes

6 Integrated Pollution Prevention and Control IPPC operates under the Pollution Prevention and Control (England and Wales) Regulations 2000 (PPC) What is it? - A Regulatory System that employs an integrated approach to control the environmental impacts of certain industrial activities - Single permitting process - Operators have to develop proposals that apply best available techniques (BAT) - UK Sector Guidance Notes

7 Integrated Pollution Prevention and Control Potted History Many industrial sectors covered by the IPPC Directive were regulated under Part I of the EPA Integrated Pollution Control (IPC) and Local Air Pollution Control (LAPC). Part A regime of IPPC Environment Agency regulates Part A(1). Part A (2) regulated by the local authority. Part B regime of Local Air Pollution. Prevention and Control (LAPPC) represents a continuation of the old LAPC regime.

8 Integrated Pollution Prevention and Control In making an application the operator must cover various environmental Issues: (a) (b) (c) (d) (e) (f) satisfactory environmental management of the installation; adequate compliance monitoring; assessment of polluting releases and the identification of BAT; compliance with other EU Directives, Community and nationalenvironmental quality standards (EQSs) and domestic regulations; energy efficiency, waste minimisation and management; the prevention of accidents;

9 How PPC changes Emissions Since 1990 emissions from Environment Agency Wales industry regulated sources have reduced by: Emissions to air in kilotonnes Year Sulphur oxide emissions Nitrogen oxide emissions PM10 Emissions 72% for sulphur dioxide 64% for particulates (as PM10) 49% for oxides of Nitrogen

10 How Does PPC Reduce CO2 Emissions? Predominant sources of energy in UK - conversion of fossil fuels Energy Generation Using Fossil Fuels results in large CO2 release Environmental Impact of Carbon Dioxide Emissions is global No Universally acceptable methodology that assesses this impact in terms of emissions concentrations Emissions of CO2 used as an indicator of environmental impact of energy use

11 The Environment Agency s Role Regulatory Requirements for Energy Efficiency under IPPC : The determination of BAT for energy efficiency by setting standards based on emission limit values (ELVs) is not considered appropriate. BAT is an appropriate balance between the costs of the techniques and the environmental benefits that they deliver. Most energy efficiency techniques result in a net cost saving over the life of the technique.

12 Reduction in Carbon Dioxide? Carbon dioxide emissions in Wales from Agency regulated processes have been steadily decreasing Carbon Dioxide from EA Regulated Processes 250 CO2 ((Mt) Wales England and Wales Year

13 Source Profile Greenhouse Gas Emissions in Wales (Megatonnes of Carbon as global potential weighted and as a percentage of total) by sector

14 The Environment Agency s Role Regulate Industries under Pollution Prevention Control Regulations The aim of the efficiency requirement of the IPPC Directive is to minimise pollution arising from the consumption of energy in industrial processes Regulation 11 (3) (b) of the Pollution Prevention and Control Regulations 2000 SI 1973 specifically requires: that installations should be operated in such a way that energy is used efficiently

15 The Environment Agency s Role Regulatory Requirements for Energy Efficiency under IPPC : All IPPC installations shall meet a set of defined basic energy requirements All IPPC installations must meet additional energy efficiency requirements: - through participation in a Climate Change Agreement, or Emissions Trading Scheme or Direct Participant Agreement OR - through compliance with permit - specific requirements

16 The Environment Agency s Role Other Legislative Influences The Climate Change Levy - tax on business energy use Climate Change Agreements - provides 80% discount on the Climate Change Levy UK Emissions Trading Scheme - voluntary trading scheme EU Emissions Trading Scheme

17 Differences between EU ETS and PPC The Greenhouse Gas Emissions Trading Scheme Regulations 2000 (SI 2003 No.3311) amend the Pollution Prevention and Control (England and Wales) Regulations 2000 (SI 2000 No. 1973) EU ETS require that PPC permits should not duplicate controls on CO2 Emissions Exception arises where the regulator considers that such emission limit values, equivalent parameter or technical measures are necessary to ensure that no significant local pollution is caused by CO2

18 Differences between EU ETS and PPC Definitions of activities captured under the Greenhouse Gas Emissions Scheme Regulations 2003 differs to that caught by PPC e.g combustion activities threshold >20MW thermal e.g at present no de minimus for combustion activities e.g different definition of operator, site and hence installation boundary

19 EU ETS Competent Authority for all installations in England and Wales UK Government develops the NAP Competent Authorities responsible for: Permitting installations Assessing and approving monitoring and reporting plans Assessing compliance Enforcement Administration of the emissions trading registry

20 European Union Emissions Trading Scheme Directive 1 st Phase of the scheme aims to reduce European Carbon Dioxide Emissions over a 3 year period EU ETS should deliver 5.5 MTCO 2 reduction by 2010 Reduction of CO2 emissions on cap and trade basis Mechanism to achieve Kyoto Commitments Deliver an overall reduction in UK CO2 Emissions of 15.2 % on 1990 levels by 2010

21 European Union Emissions Trading Scheme Directive Purpose of the scheme Any installation releasing CO 2 after 1 Jan 2005 must have a permit Existing installations will receive a free allocation of carbon dioxide allowances under the National Allocation Plan New Entrants will have access to a Reserve Originally mtco 2 of allocations to be handed out or placed in New Entrant Reserve Likely that allocations will be traded at between 4-10/tonne

22 European Union Emissions Trading Scheme Directive Each Year each operator must declare his verified emissions and surrender allowances equal to those emissions Operators and others can trade allowances Those with insufficient must buy or pay civil penalty Those with an excess may sell

23 The National Allocation Plan (NAP) The NAP was finalised in Summer New Entrant Reserve (NER) for new entrants that commence operation after 31/12/03 but before 31/12/07 Benchmarks to calculate NER allocation. Operators will apply to the regulator using these benchmarks to bid for allowances from NER Closures will trigger de-allocation to the NER Late applicant reserve for the ignorant/neglectful

24 Environment Agency s other roles Required action falls into two groups: Mitigation - taking action to reduce the rate of increase of carbon dioxide concentration in the Earth s atmosphere so as to eventually stabilise it and Adaptation preparing to live with the consequences of climate change, for even if we are successful in stabilising carbon dioxide it will be higher than in the past

25 Mitigation We wish to: Promote the need for the future CCP to set out an ambitious domestic environmental agenda to move the UK to a low carbon economy Promote the need for energy consumption, the major contributor to climate change to be reduced. Increasing energy efficiency remains the most cost effective way to reduce emissions. Promote the increased use of renewable energy and low carbon technologies.

26 Adaptation We wish to: demonstrate that climate change is already a priority for the Environment Agency. Particularly, for our flood, coastal defence and water resources work. explain the challenges that we face on many of our core operations highlight the systematic approach we are adopting to ensure that all functions identify what action is needed and on what timescale.

27 Environment Agency s Role in Climate Change - IPPC Emissions Trading Mitigation/Adaptation Isobel Moore, Policy Manager, EA Wales